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Balancing The Costs Of Health Insurance For Your Employees

Balancing The Costs Of Health Insurance For Your Employees


Health insurance is one of the main benefits employees look for when they

take a position with your company, and a must have for any business.

Health insurance plans are available in a wide variety of coverage levels, with

differing costs to you and to the employee. The key to finding the right

policy is to choose one that balances the cost to your company with a

monthly premium your employees can afford.


Consider Offering Options

One of the best ways to keep control over your insurance costs and still

make sure your employees can handle the monthly payments is to choose a

few options and let your employees take their pick. Many companies choose

three options: the first is a low cost policy, usually with high deductibles that

mainly offers coverage for well visits and catastrophic coverage. The second

is a mid-range policy that keeps the premium down while offering lower

deductibles and better coverage. Finally, for those who are in need of a

more comprehensive plan and are willing to pay more, a third option is a

plan with a high monthly payment for the employee but low deductibles, if

any, and a very high level of coverage.

Each employee can make their choice based on their health care needs and

their monthly budget. By spreading out the cost among these policy options,

your company can find balance in the cost of health care.


Offer Health Savings Accounts

HSAs, or health savings accounts, are one of the newer and easier ways to

help employees save on their health costs while cutting back on the prices of

coverage for both you and the employee. Many companies offer their

employees a contribution to their HSA each year as an incentive. The HSA

allows the employee to pay for medical expenses such as co-pays from a

pre-tax account to which they contribute. These accounts are generally

offered in conjunction with a lower cost insurance policy, allowing everyone

to save money.

Remember that health insurance is one of the most important benefits you

can offer to your employees. There is no point in offering a policy that your

employees cannot afford. When it comes down to choosing a policy take the

time to gain an understanding of what matters most to your employees. In a

small company, it may even be possible to hold a meeting in which your

people can offer their input. Knowing what they think is reasonable in terms

of monthly payments and which coverage options are the most important will

help you to select the right group coverage for your company.

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